| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 370.30 | 12001 |
| Intrinsic value (DCF) | 769.03 | 25032 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Jerash Holdings (US), Inc. (NASDAQ: JRSH) is a leading manufacturer and exporter of customized and ready-made sportswear and outerwear, serving brand-name retailers primarily in the U.S., Jordan, and internationally. Specializing in t-shirts, jackets, pants, shorts, and personal protective equipment, Jerash leverages its vertically integrated production capabilities to deliver high-quality, cost-effective apparel solutions. Operating in the competitive consumer cyclical sector, the company benefits from strong relationships with global retailers and a diversified product portfolio. Headquartered in Fairfield, New Jersey, Jerash Holdings has established itself as a reliable supplier in the apparel manufacturing industry, balancing innovation with operational efficiency. Despite recent net income challenges, its solid cash position and low debt levels provide financial flexibility in a volatile market.
Jerash Holdings presents a mixed investment profile. The company operates in a highly competitive, low-margin industry, reflected in its recent net loss of $2 million and negative EPS. However, its strong cash position ($12.4 million) and minimal debt ($0.99 million) suggest resilience. The modest dividend yield (0.2/share) may appeal to income-focused investors, but revenue stagnation and cyclical demand risks warrant caution. Jerash’s vertical integration and established retailer relationships provide a competitive edge, but margin pressures and reliance on a few key clients pose risks. Investors should weigh its operational strengths against broader apparel sector headwinds.
Jerash Holdings competes in the global apparel manufacturing space, where cost efficiency and supply chain agility are critical. Its competitive advantage lies in vertical integration—controlling production from fabric sourcing to finished goods—which allows for better cost management and faster turnaround times compared to outsourced competitors. The company’s focus on mid-tier branded retailers (rather than luxury or discount segments) positions it in a niche with steady demand but intense pricing pressure. While Jerash benefits from long-standing client relationships, its reliance on a concentrated customer base (typical in private-label manufacturing) increases vulnerability to order fluctuations. Competitively, it lacks the scale of giants like Hanesbrands but differentiates through customization capabilities and proximity to Jordan’s qualified industrial zones (QI-Zones), which offer tariff advantages for U.S. exports. However, rising labor costs in Jordan and competition from lower-cost Asian manufacturers (e.g., Vietnam, Bangladesh) challenge its margin stability. Strategic shifts toward higher-margin PPE products during the pandemic showcased adaptability, but sustaining growth requires diversifying into tech-enhanced apparel or sustainable manufacturing to align with industry trends.